Phoenix – Viad Corp. announced its Second Quarter 2012 results last week, which reflected consolidated revenues of $246.5 million, a 3.3% increase compared to the same period in 2011. Paul Dykstra, chairman, president and CEO, said in the earnings conference call, that the uptick was driven primarily by the strong performance of the Marketing & Events Group, which encompasses Las Vegas-based Global Experience Specialists (GES). That group posted Second Quarter revenue of $216.9 million.
U.S. same-show revenue increased 6.1% to $58.3 million for the quarter compared to $54.9 million in the prior year. GES President Steve Moster told Trade Show Executive that same-show revenue has grown for eight consecutive quarters. “We’re two years into recovery and still continuing strong,” he said.
Dykstra attributed the growth to tighter control on discretionary spending, a focus on labor management, and an effort to optimize service delivery methods.
In the past 18 months, GES has finalized new collective bargaining agreements (CBAs) with union partners that helps manage the labor used for installations. “We’ve reached mutually favorable CBAs that more accurately reflect the current economy, and it helps us, the organizers and the exhibitors,” Moster said. In addition, he said the company’s online exhibitor management tool has contributed to exhibitor spending growth.
In the earnings call, Dykstra noted that there had been an overall increase in the size of events, the number of exhibiting companies, the number of attendees and show floor spending. New business such as the five annual events awarded to GES by the American Wind Energy Association late last year also contributed to the better-than-expected results, he said.